ZID of the Law on Assistance to Agricultural Producers No. 502-01-6 filed by the Ministry of Justice

Ex. No. 506-00-506

MR RUMEN CHRISTOV

CHAIRMAN OF THE COMMISSION

AGRICULTURE AND FOOD

TO THE 43RD NATIONAL ASSEMBLY

REGARDING: the introduced bill to amend and supplement the Act for the assistance of

farmers, No. 502-01-6, submitted by the Council of Ministers

DEAR LORD CHRIST,

In connection with the bill for amendment of the Law on Assistance to Agricultural Producers submitted for discussion, the Confederation of Employers and Industrialists in Bulgaria suggests that when proving the legal basis for the use of agricultural land under Article 41, paragraph 1, the lease should also be included . Our specific proposal is together with the changes proposed in §42 of the draft law to Art. 41, to add the term "leasing" in art. 41, paragraph 2, item 2, namely:

The following changes are proposed in § 42:

1. A new item 2 is created with the following content:

2. Paragraph 2, item 2 is amended as follows:

"agreements for lease, rent or lease of agricultural land""

2. Point 2 becomes point 3.

Motives:

The adoption of the LLP comes at a time when the leasing of agricultural land was an unknown tool for acquiring agricultural land. At present, however, when farmers are the main buyers of agricultural land, financial leasing, along with bank lending, are the only financial instruments providing farmers with the means to increase their own land. Leasing contracts (including on agricultural land) are legally regulated in our legislation, both in the main laws (Commercial Law and ЗПД, as far as the ТЗ refers to the "Rent" rules) and in a number of special laws.

Leasing regulations are also found in special laws such as the Law on Special Investment Purpose Companies (SIP), where Article 4 states that:

"Art. 4. (1) The special investment purpose company may carry out the following transactions:

1. raising funds by issuing securities;

2. purchase of real estate and real rights on real estate, carrying out constructions and improvements, with the aim of providing them for management, renting, leasing or leasing and their sale, or purchase and sale of receivables.", i.e. the legislator has explicitly indicated the transactions of rent, lease and lease as independent and permissible by law.

The non-inclusion of lease contracts as a legal basis for the use of agricultural land leads to an unjustified limitation of the rights of agricultural producers - lessees under such contracts. They are placed in an unequal position compared to other agricultural producers, since they cannot register the properties they use and take advantage of the support opportunities that other producers enjoy.

With respect,

Eugene Ivanov

Ex. director